Mu' meneen Brothers and Sisters,

As Salaam Aleikum wa Rahmatullahi wa Barakatuh.  (May Allah's Peace, Mercy and Blessings be upon all of you)

One of our brothers/sisters has asked this question:

Working in general insurance haram?

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Answer:

Working in insurance company

Allah says in the Holy Quran Chapter 2 Surah Baqarah verse 274-276:

But those who devour ‘riba’ become like the one whom Shaitaan has bewitched and maddened by his touch.   They have been condemned to this condition because they say, “Trade is just like ‘riba”,  whereas Allah has made trade halaal and ‘riba’ haraam.  Henceforth,  if one abstains from taking ‘riba’ after receiving this admonition from his Lord, no legal action shall be taken against him regarding the ‘riba’ he had devoured before:  his case shall ultimately go to Allah.   But if one repeats the same crime even after this,  he shall go to Hell,  where he shall abide for ever!   Allah deprives ‘riba’ of all blessing and develops charity, and Allah does not like an ungrateful,  sinful person.

Allah says further in the Holy Quran Chapter 2 Surah Baqarah verse 278:

O Believers!,  fear Allah and give up that ‘riba’ which is still due to you,  if you are true believers.   But if you do not do so,  then you are warned of the declaration of war against you by Allah and His Messenger!

Allah says in the Holy Quran Chapter 4 Surah Nisa verse 161:

That they took ‘riba’,  although they were forbidden.  And that they devoured men’s substance wrongfully.   We have prepared for those among them who reject faith a grievous punishment (of Hell Fire)!

Allah Says in the Holy Quran Chapter 3 Surah Ale-Imraan verses 130-132:

130    O ye who believe! Devour not ‘riba’ doubled and multiplied; but fear Allah; that ye may (really) prosper.

131    Fear the Fire which is prepared for those who reject faith.

132    And obey Allah and the Messenger; that ye may obtain mercy.

Al-Tirmidhi Hadith 2829        Narrated by Ali ibn AbuTalib

Ali said he heard Allah's Messenger (saws) invoke the curse of Allah on those who took usury, those who paid it, those who recorded it, and those who refused to give sadaqah.

Almost all the conventional insurance companies transact their business based on interest, and it is this interest aspect which is deemed absolutely haraam in Islam.  But Alhamdolillah, today there are several Islamic Insurance Institutions which provide insurance cover on various aspects based on Shariah principles, and there is absolutely no harm in working in such ‘interest-free’ institutions.

One cannot say with absolute conviction that every person who works in a conventional interest-based insurance company devours or consumes interest…thus it would not be accurate to say that their earnings are all ‘haraam’.  But without an iota of a doubt, those who work in the conventional interest-based insurance field are obviously involved in promoting something (interest) which has clearly been prohibited by Allah and His Messenger (saws); thus it is expected that they will at least share a part of the burden of the sin.  And Allah Alone Knows Best.

Sahih Al-Bukhari Hadith 3.267         Narrated by An Numan bin Bashir

The Prophet (saws) said "Both legal and illegal things are obvious, and in between them are (suspicious) doubtful matters. So whoever forsakes those doubtful things lest he may commit a sin, will definitely avoid what is clearly illegal; and whoever indulges in these (suspicious) doubtful things bravely, is likely to commit what is clearly illegal. Sins are Allah's Hima (i.e. private pasture) and whoever pastures (his sheep) near it, is likely to get in it at any moment."

When Allah and His Messenger (saws) have declared something forbidden,  then to derive any income from such an establishment would also be forbidden.    Thus,  if one is seeking employment,  he should abstain from seeking work in a conventional Insurance company.    But if one is already working in an insurance company,  it would be prudent for him to seek repentance of Allah,  and search for another place to employ his talents;  and when he finds an appropriate job,  resign from the present Insurance job.    And if one does this move purely for the sake of Allah Subhanah,  it is expected that the Bounteous Lord will enrich him from His Infinite resources and give him a huge reward for his striving to obey the commands of Allah and His Messenger (saws).

If one turns down an offer from working and earning in a ‘riba’ based environment only because they wish and strive to obey the Commands of their Lord Creator; not only will their Lord Most Gracious be pleased with their sacrifice and reward them for their piety and righteousness, but if the Lord Wills and Pleases, He will provide them abundant lawful sustenance from His Unlimited and Infinite Bounties.

Allah Says in the Holy Quran Chapter 17 Surah Israa verse 30:

30      Verily thy Lord does provide sustenance in abundance for whom He Pleases, and (for some) He provides in a just measure: for He does know and regard all His servants.

Sahih Muslim Hadith 6392 Narrated by Hudhayfah ibn Usayd

The Prophet (saws) said: “When the drop of (semen) remains in the womb for forty (days) or forty nights, the angel comes and says: “My Lord, will he be good or evil?” And both these things would be written. Then the angel says: “My Lord, would he be male or female?” And both these things are written. And his deeds and actions, his death, his livelihood; these are also recorded. Then his document of destiny is rolled and there is no addition to and subtraction from it.

Al-Tirmidhi Hadith 79 Narrated by Umar ibn al-Khattab

Umar heard the Prophet (saws) say: 'If you put your faith completely in Allah, He will arrange for your sustenance in the same way as He provides for the birds. They go out in the morning with their stomachs empty, and return filled in the evening.'

Whatever written of Truth and benefit is only due to Allah’s Assistance and Guidance, and whatever of error is of me. Allah Alone Knows Best and He is the Only Source of Strength.

Your Brother in Islam,

Burhan